Markets opened lower on Wednesday after a report showed retail sales fell for a second straight month and report out of Europe that several banks will fail their stress tests. Madelynn Matlock, director of international investments at Huntington Funds and John Browne, senior market strategist at Euro Pacific Capital discussed their insights.
“We think markets will continue to be volatile,” Matlock told CNBC Wednesday. “Until September, we don’t see a clear trend.”
Matlock also warned investors that the growth rate in China would start to decline. “China is not going to be the growth engine for the global economy that it was last year,” she said.
In the meantime, Browne said the market will likely stay highly volatile and trend downwards.
“Overall in the western world, we’ve been used to an era of double-digit P/E ratios, but I think we’re heading for an era of single-digit P/E ratios,” he said. “And that’s what worries me about the stock markets.”
Scorecard—What They Said:
- Matlock's Previous Appearance on CNBC (Nov. 6, 2009)
- Browne's Previous Appearance on CNBC (Jun. 30, 2010)
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Major Earnings This Week:
Bank of America
No immediate information was available for Browne or Matlock.
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